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What is the User Tax? Proceeds from this tax go directly into the City's general fund to assist property tax and other general revenues to fund Police, Fire, Planning, Building and Cemetery Programs. Even with the user tax the city's electric rate is very competitive with the other provider in the area (Pacific Power).
Don't my property taxes cover the cost of city services? Property taxes pay for about 27% of the expenses. The remaining general fund revenues come from the user tax, franchise fees, hotel/motel taxes and other miscellaneous sources. They all help to diversify the funding necessary for the General Fund, minimizing our reliance on property taxes alone. As an example, the electric user tax revenue is equivalent to $1.3600 in property taxes. However the city only has $0.0892 of unlevied tax.